Hargreaves Lansdown reports 14% asset rise

Hargreaves Lansdown has seen a rise in assets under management by 14 per cent in the quarter to end-September, boosted by stock market rises during the period.

Assets rose to £19.9bn as at September 30, compared to £17.5bn at end-June, according to a market statement.

The assets under management rises were also boosted by £550m of net new business.

Total operating revenues at the firm rose by 25 per cent to £45.2m as at September 30, compared to £36.1m on September 30 2009.

This included a 33 per cent revenue boost on the HL Vantage platform to £33.5m thanks to “higher asset values”.

The number of clients on Vantage rose by 7,000 during the quarter, from 330,000 as at end-June to 337,000 as at September 30. The number of active accounts held by clients rose from 514,000 to 524,000.

The group’s discretionary activities saw a 2 per cent revenue rise to £5.6m, while third party and other services generated 13 per cent more revenues at £6.1m.

HL chief executive Ian Gorham says a 12.7 per cent rise in the FTSE all-share from 2543.5 points to 2867.6 helped performance.

He says: “The media is full of doom and gloom, cuts, and public sector union threats. Despite this it is encouraging that our business inflows during the first quarter have been resilient. Our £0.55 billion in net new business matches the record start to last year. Both the rising stock markets and net new business have helped to drive up operating revenue.

“The recently announced clarity over pension rules is welcome.  We believe these changes are positive and should assist our pensions business by removing current uncertainties and retaining effective levels of tax relief for private pensions saving.”

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